The capitulation of Terra Luna will likely discourage newcomers to the crypto and Decentralised Finance industry. A 99% sell-off from a major top 10 cryptocurrency will have poisoned any sort of confidence in Web3.0 applications and particularly DeFi. But these times offer the best opportunity for long term investments. Buying in maximum fear can lead to astronomical gains.
Logarithmic Finance is a new Layer 3 DeFi protocol linking together some of the most influential blockchains in Avalanche, Ethereum, Polygon Matic, BSC and Solana.
Will Avalanche snowball like Luna?
The developers behind AVAX have created a Web3.0 DeFi layer 1 that combines high levels of decentralization with low transaction times and fees. Gas fees are a fraction of the price of Ethereum’s, consistently costing a few cents each time.
Avalanche has successfully become one of the leading Layer 1 platforms regarding TVL – Total value Locked. AVAX has become the 5th largest ecosystem with over $200 billion TVL despite the recent sell-offs. Currently trading at a market capitalisation of $7.6 billion, no matter the bearish market sentiment, it is difficult to see Avalanche’s valuation slipping much further.
Compared to the catastrophe of Luna, possibly an irreversible one, Avalanche seems in very safe hands; it looks set to represent the future of Decentralised Finance with Ethereum. Luna was traversing new ground with its algorithmic stable coin. A coin that has ultimately failed, leaving the future of Terra Luna extremely uncertain.
Avalanche’s fundamentals are extremely strong and the project itself hasn’t experienced any failures. It was heavily linked to the Luna System as Terra had bought $100 million in AVAX tokens for its stable coin reserves. As such, it has been subject to Luna’s capitulation. Unlike Luna, however, its future is not uncertain and is just experiencing the turbulence that is part and parcel of cryptocurrency.
MATIC’s meticulous success
The best ideas always seem obvious once you’re aware of them. This was a common feeling amongst developers once Polygon Matic launched. A dedicated DeFi Layer 2 solution to the Ethereum scalability woes that investors were becoming apprehensive about.
Ethereum gas fees are volatile and are never cheap, costing anything over $20 each transaction depending upon how much data needs to be transferred in the smart contract. Regarding some NFT minting instances, gas fees have been known to be in excess of $1000 – it’s rather hard to get your head around.
Polygon Matic was able to implement a substrate network to Ethereum blocks making transactions quicker and cheaper. MATIC can ultimately be seen as an extra route to a congested highway, finding routes that will get you to your destination quicker, using less fuel (gas fees). This revolutionised the demand for Decentralised Finance with new projects like Curve finance using MATIC to help navigate the congestion on Ethereum’s servers.
One of the early movers in the Ethereum layer 3 sector, LOG proposes a truly interoperable framework of blockchains and DeFi by allowing users to create their own liquidity pools and pairings on their favourite blockchain.
Where does this leave Logarithmic Finance?
Being a Layer 3 protocol, Logarithmic Finance can interact with blockchains built through different consensus mechanisms as it does not get bogged down in the communications of layer 1 and layer 2 protocols. Instead, they facilitate transparency between Layer 1s and 2s ensuring that they can be used on multiple blockchains.
Logarithmic Finance is quickly becoming an extremely exciting project. Despite the bearish sentiment in the crypto markets, LOG has increased by over 100% in the first month of its presale. Combining the utility of Web3 DeFi with an interoperable network of communicative blockchains, Logarithmic Finance has a very promising future in the future of true interoperability.
Don’t miss LOG’s presale, check the links below for more:
Presale: https://presale.logarithmic.finance/register
Website: https://logarithmic.finance/
Telegram: https://t.me/LOGARITHMIC_FINANCE_OFFICIAL
Twitter: https://twitter.com/LOGARITHMIC_FI
